If there is a bull market, one that extends for longer periods, there will be many choices to choose from. As most stocks move up because of institutional buying, and in a bull market, particularly a bull market like present, where retail are eager to apply for IPOs, SME IPOs, there is no dearth of opportunities for institutions, and institutions being equipped with better analysis of business, along with the fact that they have to perform at least good, if not being first, so as to collect funds from retail via their offerings, some large cap stocks may get no traction.
Only, when there is froth, which can be felt or seen in one way or the other, things start to move the other way. Looks like, this has begun. A 10% appreciation with a 2% dividend yield again starts to look good. But even here, if there is loss of market share, which seems to happen with many companies, the price paid here can still be high, so despite there is no threat to existence for years, the best scenario would be to be at a very low price.
In a way, this makes sense. As time and capital are limited, chasing growth with some safety can be attempted. Be it institutions or individuals, everyone tries to maximize profit, find optimal use of capital.
Just some thoughts. Not invested now, had a position in the recent past.
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